If you've been lucky enough to amass over 100 million Baht (approximately $3M), then your estate will be unlucky enough to be caught in Thailand's inheritance tax threshold.
Few of us have managed to squeeze that much out of our stay in Thailand, but there's a lot more to think about than that.
What if your wife dies before you? Do you benefit from her estate?
And what of single guys / girls who hold assets such as condos and cars in Thailand, who gets their greedy paws on those when you buy your farm in the sky?
And what if you die without a will (intestate)?
The fact is, few people know where they stand on such matters, thus the need for this article.
In this post, I'll explore the ins and outs of Thai inheritance tax law, including what happens to your assets if you die in Thailand, and what you stand to inherit if your wife/husband dies before you.
Who Pays Inheritance Tax in Thailand?
Unless you're sitting on $3m of money earned in Thailand, then your assets won't be subject to IHT.
If you are, your heirs will pay 5 or 10 percent – depending on their relationship to you – on anything over that amount
The law states:
The inheritance tax is 5 per cent for ascendants or descendants and 10 per cent for others. It is levied on assets worth above Bt100 million.
IHT is levied on heirs who are either individuals or Thai juristic persons. It is also applied to non-Thai nationals who are resident in Thailand according to the immigration law, and non-Thais inheriting assets located in Thailand.
This means that your Thai wife, or full or half Thai child, will pay IHT on your estate if it meets the threshold.
But really, who has this kind of wealth in Thailand? you might ask.
Many more than people tend to think, actually.
Wealthy Thais are far wealthier than we might perceive, and as such the government expects to collect 3 Billion Baht per year at the 5 percent rate.
Gift / Personal Income Exemptions
Like most countries, to counter possible avoidance of inheritance tax, a gift tax was also introduced by way of amending the types of tax-exempt income in the Thai Revenue Code.
The types of income exempt from personal income tax include income derived from maintenance, income derived under moral obligation, inheritance, or a gift received in a ceremony or on other occasions in accordance with established custom.
The law will only exempt the following types of income from personal income tax:
The portion of inheritance income not exceeding 100 million Baht under Section 12 of the Inheritance Tax Act.
Income derived from the transfer of ownership or possessory right in an immovable property without consideration by the parent to a legitimate, non-adopted child, only for the portion not exceeding 20 million Baht per tax year.
Income derived from maintenance or a gift from ascendants, descendants or a spouse, only for the portion not exceeding 20 million Baht per tax year.
Income derived from maintenance under moral purposes, or a gift received in a ceremony or on occasions in accordance with custom and tradition from persons who are not ascendants, descendants or a spouse, only for the portion not exceeding 10 million Baht per tax year.
Income from gifts received for use for religious, educational or public purposes according to the rules and conditions under a ministerial regulation (yet to be issued).
Yes, I'm sure you can see how a bunch of rich folks will find loopholes here and pay diddly squat. At which point the threshold will no doubt be lowered to scoop up those on moderate incomes.
Thanks to Benjamas Kullakattimas, Head of Tax at KPMG Thailand, for providing the English interpretations of the above list.
What Happens to My Assets When I Die in Thailand?
Single guys and unmarried guys in relationships might wonder what will become of their condo and Honda Click should they bite the bullet. The hard and fast truth is, if you have assets in Thailand, you need to make a will.
You should have a will for both your assets in Thailand and any that you hold in your home country.
When you die in Thailand, a government officer requests a copy of a will either from the family or the lawyer of the deceased.
In short, the will filed in your home country will not cover any property in Thailand.
Failing to have a will could result in lengthy, costly probate.
Without a will in Thailand, these assets are the property of your Thai estate and would be subject to Thai inheritance tax, if they total over the 100 million Baht mark.
For the married, your assets are distributed according to Thai law, and this means that family members are given priority (see the next section).
If you should die with no will, and there is no family or said heirs, then the state has the right to take all your property and sell it as it sees fit. Gasp!
If you have accumulated assets in Thailand that you don't want to end up in the state's purse, then you really should consider making a will in your home country that includes these assets, so that your relatives are aware of what you have and who is heir to them.
You should also file a will in Thailand too.
In order to register a will in Thailand and have an executor appointed, you must go to a provincial court. The executor will then get the court’s authority to dispose of the person’s assets in accord with their will. Of course a Thai lawyer can arrange this for you.
+ Read: How to Make a Will in Thailand
Will I Inherit My Wife's Fortune?
If she leaves it to you in her will, then yes. But please do read below about land and property.
If your wife doesn't leave a will, you better get in line, because, see that list below, that's you at #7, at the bottom of the queue:
In Thailand there are 6 classes of statutory heirs and they are entitled to inherit in the following order:
- Descendants
- Parents
- Brothers and sisters of full blood
- Brothers and sisters of half blood
- Grandparents
- Uncles and aunts
- The surviving spouse is a statutory heir, subject to the special provisions of Section 1635 Civil and Commercial Code.
You wife might choose to leave you money, gold, or perhaps her car. But if you expect to inherit these things, you'd do well to encourage her to make a will that stipulates exactly what she wants to leave you, and for her to instruct her family of her wishes, so there is no dispute.
Family disputes are common in this regard.
If family members seize assets after a death, the process for a foreigner getting them back, even with the presence of a will, is a very difficult one.
This is certainly something you should think about if you have a child together, because no doubt you'll want your child to inherit your wife's assets.
Can I Inherit My Wife's Land?
Believe it or not, you can inherit your wife's land.
If she doesn't make a will that says otherwise, it will be passed to you. But there is a catch, and a pretty huge one at that:
You cannot register ownership of the land because you will not be given permission.
You must dispose of the land within a reasonable period (up to 1 year) to a Thai national.
If you fail to dispose of the land, the Director-General of the Land Department is authorized to dispose of the land and retain a fee of 5% of the sale price before any deductions or taxes.
Yes, you're probably thinking what I'm thinking: No one is going to give you a decent price for that land once word gets out that your wife has died and you need to offload the land within a year.
Oh, and by the way, if you're living in your wife's house, consider that Thai law sees a house as “always having an interest in the land”, so I'd pack your bags within a year before your mother-in-law kicks you out, hehe!
What About Inheriting My Wife's Condo?
It's almost the same as the deal with land:
A foreigner who acquires a condominium unit by inheritance, either as statutory heir or inheritor under will, shall acquire ownership, however, unless the foreigner qualifies for ownership under Section 19 of the Condominium Act, it is required by law that the foreigner shall dispose of the unit within 1 year from the date of acquisition.
The reality is that most foreigners wouldn't qualify. Being retired in Thailand just isn't enough. See below for who qualifies:
Image Source: (Samui for Sale)
In Summary
The reality is, unless you're pretty wealthy, your estate probably won't meet the threshold for Thailand's inheritance tax.
There aren't that many foreigners naive enough to keep that much wealth in Thailand, anyway. But you may well have assets you want to make sure get passed to your wife or your kids, so making a will is a good idea.
The same goes for single people who've accumulated wealth in Thailand. You should make a will both back home and in Thailand to cover the event of your death.
Lastly, there's a number of foreigners living in Thailand who live in their wife's house, on their wife's land, drive their wife's car, and may even live off their wife's income.
If you fall into this category, then you should definitely speak to your wife about what will happen to her assets if she dies before you, because these will default to her family, in line with the statutory order of heirs outlined earlier in this post.
Getting Professional Advice
I am not an accountant, lawyer or financial advisor. This post simply represents my personal interpretation of the inheritance tax laws in Thailand.
Of course, I will make every effort to provide satisfactory responses to your inquiries in the comment section below, but it is important to note that handling IHT matters can be complex and require professional advice for a beneficial outcome.
If you find yourself uncertain about the best course of action for your tax affairs and investments, I strongly recommend consulting with a qualified professional. If you'd like, I can arrange for you to communicate with my IFA, who can offer expert guidance. If you want to get in touch, you can reach out to me via email or fill out this form.
PLEASE NOTE: If you're a UK National living in Thailand and want information about financial planning for UK inheritance tax, read this post here.
—————-
More Tips for Life Planning
Want to Start Leaning Thai?
Register a free account with Thaipod101. I use it and so do many of my readers.
Got Medical Insurance?
+ You should have. Get a quote on international cover here.
Need to send money to Thailand?
+ Go here to find out the cheapest way. Everyone is using this
Last Updated on
Claire Lawson says
My uncle lived in Thailand for many years and died in November 2011. We were not aware of this until his girlfriend got in touch to tell us the bank card she used on his account had expired and she couldn’t get a new one!
My fatter used to send him £650 each month to live off as he was never really in work but we sadly only heard from him when he needed money.
At this point we stopped the payments. I have been trying to get the remaining balance around £2000 out of the bank. I have sent them his death certificate, my passport, details etc and his bank book details to show I am his only surviving relative as his niece.
They have replied saying they need to see his Wil, but there wasn’t one, and a court order. I have no idea where to begin to get this can you help at all please?
Claire
Mar 11, 2018 at 7:01 pm
thai888 says
as it is less than 100,000 baht the bank should give it to someone with power of attorney
Did your uncle die without a Will in any country - ie intestate?
If so the succession rules kick in and therefore you need to prove by birth certificates, passports and other means that you are indeed the only remaining kin.
The banks have you at a disadvantage in that they can sit on the money until you prove who you are or get a court order.
After costs there would not be much left.
Sometime in the future you may visit Thailand and then personally go to the bank with the documents and they may give you the money.
That's a may.
Mar 12, 2018 at 10:15 am
claire lawson says
Yes he died intestate and i have sent the bank his death certificate, my passport, marriage and birth certificate, copies of his bank books etc but they are insisting that i get a court order appointing the estate administrator and they also ask for copies of the passport and house registration of the guarantor but i have no idea what they mean by that as a guarantor in England is usually in relation to a debt not a Wil?
Does anyone know of anywhere i could go to get such an order such as the Thai Embassy perhaps?
Mar 13, 2018 at 12:08 am
thai888 says
as I said you need to apply to the court for a grant of probate
the only way you can do that is to get a lawyer to apply for a plaint to get a court date
the embassy will tell you the same thing
the fees you will pay will not leave much from the estate
but if you want to proceed appeal to the admin on this site and they may give you my email address
Mar 13, 2018 at 11:44 am
thai888 says
they are normally issued a blue house book called a tibian ban and in that book the houseman or guarantor enters other people's name that are authorised to stay in the house.
I hope this helps
Mar 13, 2018 at 11:49 am
Donn says
Feb 03, 2018 at 12:29 am
thai888 kelvin says
As next of kin you have rights as do the other siblings ie your brother and sister if there are any.
Each of you, as your dad died intestate, must sign docs to submit to the court. ie first one of you needs to become the Executor and so the other siblings need to agree to this.
If no other siblings then you are sole Beneficiary, however the court needs to sanction your fathers death ie the Death Certificate, your proof of being the daughter and other proof.
If you have the bank accounts (Thailand) these should be submitted as well. If you have bank books then get them updated and so you will see if its worth going to court.
If you return to the USA then you can appoint another Executor as they need to go to court and get approval ie court order so the banks will release funds to you or the Executor and then they can TT this to you.
The anti money laundering rules apply and so the banks will need proof of where then funds came from and why they are being sent back to the USA.
If there are bank accounts in the USA then you will need to get the death certificate translated and several copies made, then certified translated, then Dept of Foreign Affairs for legalization to make it through the USA system.
Trust me I have experience with all this and if you can answer the above this will let me know more.
Feb 03, 2018 at 11:18 am
Blake says
Jan 11, 2018 at 6:05 am
kelvin says
His GF has no legal grounds as common law wife.
Did this go to court? and if so as you said the condo should have been sold as you are non residents here.
Who's been paying the common fees etc on the condo?
Normally if not sold the court can order it be seized and sold at auction will be less than market value. So after 3 years you are lucky.
So you will need to sell through an agent if you are not here. The market is low at the moment.
I would love to help you however this site does not allow direct contact.
Jan 11, 2018 at 10:03 am
TheThailandLife says
Jan 11, 2018 at 10:20 am
Blake says
Jan 11, 2018 at 11:35 pm
Blake says
Jan 11, 2018 at 7:49 pm
kelvin says
I am involved in international Law
Jan 12, 2018 at 11:48 am
Blake says
Jan 13, 2018 at 8:59 pm
kelvin says
Jan 15, 2018 at 1:44 pm
TheThailandLife says
Jan 16, 2018 at 11:03 am
thai888 kelvin says
Feb 03, 2018 at 11:19 am
Darrell says
My father just died recently, suddenly in his sleep. Married to a Thai lady for about 9yrs. (he has two children in the UK). They have a house and land. He always said the property would be in her name but I'm not sure about anything else like bank accounts. I don't even know if he made a Will. She has shown some concern about a claim to the estate.
If she cannot produce a Will and they had joint bank accounts then am I correct that she would be entitled to 50% of the money, and the remainder 50% split between the two UK children? If this is the case, how do I go about organising this? Do I need to find out the bank and write to them, to protect the assets. Or will the bank get in touch with me? How can I be sure that all the finances are being disclosed to me?
The land was used for rice, Palm Oil and Rubber. If this was a business in joint names then do I assume the same 50/25/25 split on the value of any cash?
Obviously if there is a Will it should be relatively straight forward, following the requests outlined in it.
Thanks for any pearls of wisdom!
Jan 11, 2018 at 2:47 am
kelvin says
Without knowing more - there are many ways around the above. ie a mortgage, loan agreement, lease back, company set up that owns the house.
Bank accounts - company accounts joint accounts dads account - Well you cannot simply talk to the bank as they will not disclose whats in the accounts without a court order. The wife may have access to the accounts and then continue on with the business or drain the accounts.
If it was a registered company and Dad was a share holder then a check of the DBD data base will show all involved and if the books are up to date.
If there is a Will get a copy then you will know what to do. If no Will then you will need to appeal to the Wife for disclosure.
Was there a hospital report or a death certificate issued regarding the cause of death?
Was there a funeral cremation? If so did the Wife organise this? Did any family attend?
Any pensions in the UK? and if so was money regularly transferred to Thailand and to whos account?
Sorry for vague answers but there is not much to go on here.
Jan 11, 2018 at 9:51 am
Babs says
Dec 28, 2017 at 8:26 pm
kelvin says
POA from hospital is only good for hospital and not the banks.
Money in the bank account - if 100k or less then you can approach the bank to release this to you as next of kin.
If over 100k you may need a court order unless you have the PIN number to the bank account.
If you have the PIN numbers then you know what to do.
Passport should be returned to the Embassy.
What about cremation or repatriation of the body and ashes. Each country is different.
Contact me if you need assistance.
Dec 29, 2017 at 2:52 pm
Babs says
Dec 31, 2017 at 6:22 pm
Babs says
Dec 31, 2017 at 6:45 pm
kelvin says
However, the bank may not allow this - it depends on the day in Thailand.
You can try.
If not successful then you will need a court order - so you need to weigh up the costs of getting whats left in the account minus the court fees. As this is a Civil matter the court will hear testimony from you and your relationship to the deceased. ie passport, birth certificates, etc will be used to prove this. So if you dont live in Thailand you will need to return for the court hearing or sign a power of attorney to nominate a proxy to go to court and hopefully get a court order to administer the estate. Bureaucracy at its finest.
Try option 1 first.
Jan 02, 2018 at 4:16 pm
kelvin says
try
Jan 02, 2018 at 4:25 pm
Babs says
Jan 03, 2018 at 5:48 am
Babs says
Mar 21, 2018 at 8:29 pm
thai888 says
If the mod allows you can contact me by email
Mar 22, 2018 at 11:14 am
TheThailandLife says
Mar 22, 2018 at 3:46 pm
Babs says
Thanks
Apr 04, 2018 at 3:43 pm
TheThailandLife says
Apr 04, 2018 at 5:38 pm
Babs says
Mar 22, 2018 at 8:24 pm
Bill says
Dec 01, 2017 at 3:58 pm
TheThailandLife says
Dec 01, 2017 at 4:33 pm
Bill says
Big Tks from BILL
Dec 02, 2017 at 8:12 pm
TheThailandLife says
Dec 03, 2017 at 5:36 am
kelvin says
Having said that under the CCC 1629 Thai Law you are, as you were married and aquired this item during that time, entitled to 50% of the car and as your wife died intestate her 50% can go to her children.
If the children challenge then you will need to give them some money to keep the peace.
Although it was your money this Law still applies.
Is there any other assets?
Dec 02, 2017 at 12:35 pm
kelvin says
Dec 02, 2017 at 12:39 pm
Frank G Anderson says
Dec 31, 2017 at 6:48 am
Nattinee Napolitano says
But there contact me be my son is only 11 years old and ask me to sign paper and give him to be executor for this will. That said nothing come to my son at all this will had make on Nov 2014 but my ex my ex make the new will on sep 2015 give everything to my son so what is the game?
Oct 29, 2017 at 10:05 am
kelvin says
The Thailand Will is valid if signed by him and witnessed by 2 people at the same time.
Your son is 11 years old and so you need a controller of property until he is 20 years old.
The Will if valid then the legal system can appoint an Executor if one is not named in the Will.
PM me if you want.
Oct 30, 2017 at 10:36 am
kelvin says
Oct 30, 2017 at 5:58 pm
Frank G Anderson says
Dec 31, 2017 at 6:51 am
kelvin says
Jan 02, 2018 at 1:16 pm
kelvin says
Jan 02, 2018 at 1:18 pm
gai says
example: 100000 thb inheritance
wife title to 50%: 50000 thb
the rest: 50000 thb dived by 3= 16666 (wife, daughter, adopted child)
Why is the wife is receiving more than 50%? 50000+16666 bth?
Please advise what % i should receive for my inheritance.
Sep 02, 2017 at 5:05 am
kelvin says
descendants \the fathers children
parents \ fathers parents
brothers and sisters of full blood
brothers and sisters of half blood
grandparents
uncles and aunts
The surviving spouse is a statutory heir, subject to the special provisions of
Section 1635 Civil and Commercial Code.
if they were legally married then the Sim Sod Lot law of 50-50 comes in if the assets were obtained after legally married. I hope this helps and the lesson for the day is MAKE a Will
Sep 03, 2017 at 6:45 pm
TheThailandLife says
Sep 04, 2017 at 9:29 pm
kelvin says
I will be the devils advocate: If for example you left your assets in say UK then anything over 375K Pounds would be taxed heavily, wheres if that money was in Thailand then it would lower the UK threshold and you would have an asset in Thailand. This is just one example. Another is the USA and there FACTA Laws that hunt down citizens that have over 10K USD in income overseas. If you dont pay then they will penalise you and big time. So setting up a company might be the way to go.
Yes its true that things in Thailand could change but this is true all over the World. Think Cyprus Banks where people lost millions!
A good Will and an even better Executor does make a difference when dealing with the family as should they do something to disregard the Will it could become a criminal or civil law matter. Trust me they normally dont have the income to fight this kind of thing.
Arthur, its a real coin toss. So win so loose. From my experience the ones that loose have failed to plan and have trusted to much.
Aug 31, 2017 at 12:20 pm
Sandra says
All i want is that his girlfriend can pay the funeral and get his car and the money if he had so.( i don't know because we are not unspeaking terms)
What can i do?
Please help
Aug 30, 2017 at 7:37 pm
TheThailandLife says
Aug 30, 2017 at 10:25 pm
kelvin says
Not sure what this is?
If you father lived here for many years its possible that he had some assets and a bank account.
If the bank had less than 100K then the bank may let the next of kin (NOK) take it out. However the girl friend is not the NOK and so cannot (unless she has the PIN number for the ATM) take the money out.
The car she can drive around and just register it and pay insurance each year. No one will probably know. Assets in the condo yes she will probably keep or sell.
The Embassy would be informed of your fathers death. They will tell the NOK.
It is possible the police went to your fathers house after his death and secured his passport and bank books and phone?
If they have this then you will be able to see what state his affairs were in.
The girl friend is not the NOK and not the common law wife. She is the GF and has not legal rights concerning your fathers wishes or estate.
look on the internet for a funeral and probate lawyer.
Aug 31, 2017 at 1:24 pm
TheThailandLife says
Aug 31, 2017 at 4:07 pm
kelvin says
If dad didnt have a Will then succession of beneficiaries will kick in and Sandra as a sibling whether she wants or not could be in line for inheritance or simply walk away and let the state deal with it.
Aug 31, 2017 at 4:51 pm